I Think I Have a Man-Crush on Paul Krugman
While I am at heart an Austrian economist, both by blood and book, I can't help but completely agree with Paul Krugman regarding current economic and political times. If the gov'ment does not spend to stabilize the economy and also to create jobs, then the ship is lost. Pols, pundits and bloggers who lambast federal deficits right now are idiots, very unworthy of being called fools.
Here's Krugman's recent take: http://www.nytimes.com/2010/02/05/opinion/05krugman.html?em
It's right on the money. Pols, and their adopted media, are playing politics with current deficit issues. Without the current deficit running by gov'ment, there would be soup lines.
Here's where I agree with Krugman even more. The gov'ment ought to spend another truck load on money to rebuild the energy (heavily on nuclear, wind and solar to alleviate foreign dependence), water and transportation (grid, electric cars and nat gas trucks) infrastructures to stimulate skilled jobs, which in trun will create more jobs when the skilled start to spend. Here's a description of what happens when the gov'ment does that type of spending: http://www.youtube.com/watch?v=gm98PceJhSg&feature=related
In any case, maybe it is his stunning good looks, but maybe it is just that what he is saying makes sense right now. Krugman also appears to be right that if we use political motivation and mathematical ignorance to fight gov'ment from preventing a deeper slide, well, then the United States will be lost (http://www.nytimes.com/2010/02/08/opinion/08krugman.html?ref=opinion).
People need to realize that although borrowing for the sake of consumption is a problem, borrowing for the sake of production, on the right terms, makes a ton of sense. Ask any successful business man who had to leverage up early while building a company.